In reality there is very little difference between creating money (reserves) and creating bonds. The notion that private market discipline stops profligate gove

In reality there is very little difference between creating money (reserves) and creating bonds. The notion that private market discipline stops profligate government spending by limiting the issuance of bonds by treasury is proven false by two things: Firstly if push comes to shove the Fed would never refuse to honour a Treasury payment and secondly that the bid to cover ratios in bond auctions always indicate a higher demand for bonds than the self imposed/legislated constraints of congress would allow. So the real constraint on spending is legislation, we could just as easily legislate full employment instead of legislating a balanced budget target.